Deutsche Bank has launched the first CMBS in the Netherlands and the first to more than one borrower to be structured this cycle.
The DECO 2014 TULIP CMBS is made up of two loans made by the German bank: one to PPF Real Estate Holding and the other to a joint venture between Mount Kellett Capital and Sectie 5 Management.
The CMBS will be secured against 20 retail (54.6%), office (42.2%) and mixed-use (3.3%) properties with a combined valued of €438.85m. They have a weighted average lease term of 4.6 years, total 238,048 sq m and are 85.8% occupied.
The capital structure of the CMBS is:
CLASS €m LTV
A [170.00] 38.9%
B [20.00] 43.4%
C [20.00] 48%
D [20.00] 52.6%
E [20.04] 57.2%
The deal will have an expected maturity of 27 July 219 and a legal final maturity of 27 July 2024.
Deutsche Bank will retain a 5% interest in each class of note. Pricing is expected at the end of the month and it is expected to close in mid-October. Standard & Poor’s and DBRS are due to rate the CMBS.
The initial €130.15m loan to PPF funded its acquisition of a portfolio of nine office and retail properties in July at a margin of 500 basis points over three-month Eurobor.
The €125m loan to Mount Kellett and Sectie 5, closed in May, financed 11 shopping centres and was priced at 310 basis points over three-month Euribor. The investors bought most of the assets from Corio in January.